Bitcoin Cash (BCH) Price At 3-Year High Above $700, More Steam Left?

Bitcoin Cash (BCH) has experienced a notable price surge in the past week, witnessing an increase of over 20%. Today, the Bitcoin Cash (BCH) price surged to its highest level in three years, gaining an additional 14% and surpassing the $700 mark for the first time since 2021.

Bitcoin Cash Halving Pumps BCH Price

A day before, the Bitcoin Cash network successfully underwent its second halving triggering a BCH price dip initially. However, it quickly resumed the rally to the north and is now trading above $700.

As per the on-chain data provided by Santiment, Bitcoin’s RSI is currently at 79, something similar to that observed during the March surge. The RSI serves as an oscillator gauging the pace and magnitude of price changes, with readings surpassing 70 often indicating overbought conditions, and those below 30 suggesting oversold conditions.

While the overbought RSI suggests some caution going ahead, it doesn’t necessarily forecast a downturn for Bitcoin Cash. Rather, it underscores strong investor interest and sustained buying momentum for BCH. It also signifies ongoing price appreciation with investors eager to invest in BCH.

With the 30-day Market Value to Realized Value (MVRV) ratio for Bitcoin Cash currently at 13%, some analysts may interpret this as a bearish sentiment. However, it’s important to note that BCH has historically seen price gains even with comparable MVRV ratios. This indicates a possibility for sustained investment and upward price movements, thereby reaffirming an overall bullish sentiment towards the cryptocurrency.

Will the BCH Price Rally Continue?

The recent price pump for Bitcoin Cash also comes as the miners have reduced the selling pressure. In fact, around this halving event, the Bitcoin Cash miners have been once again seen accumulating.

As per the data from IntoTheBlock, miners had reduced their holdings to a 5-year low of 6.15 million BCH by the end of March 28. However, recent data indicates an increase in their balance by 40,000 coins, reaching 6.19 million BCH by the close of April 2.

The accumulation of $242 million by Bitcoin Cash miners between March 29 and April 3 might foster investor optimism and potentially propel the BCH price towards $1,000 following the April 4 Halving event.

Aldo, the BCH order books on crypto exchanges confirm a bullish price forecast for the altcoin. If the BCH bulls sustain this breakout above $701, they can resume the rally further to $1,000.